Enterprise-wide transformation for a leading Indian kitchen appliance and cookware manufacturer

Highlights

currency_rupee

Value recognition of INR8 crore across eight initiatives.

shopping_cart

Addressed gaps in the demand and supply planning process.

place

Launched ready to assemble modular kitchen cabinets business across multiple cities.

Client challenge

The client wanted to setup sustainable business practices to exponentially improve revenue growth and achieve higher EBITDA.

Front-office challenge
Middle-office challenge
Back-office challenge

The client had limited view and control over the building blocks required to drive sales, such as:

Incentive structures
Secondary sales key performance indices
Review formats
Recognition programmes
Sales support policies.

There was an absence of core sales support functions to drive channel management
There were gaps between production and demand planning leading to comprised sales and inventory pile up
The impact of marketing intervention on business had not been analysed.

There were certain factors missing in the distribution infrastructure such as territory realignment, coverage norms, standard operating procedure (SOP) for new distributor appointment and competition data
Key performance indices were not defined for key business roles
There was ad hoc deployment of tech solutions due to the absence of a well-defined IT roadmap.

KPMG in India’s approach

KPMG in India used a cross functional team to address the client’s challenge, involving experts from procurement, operations, supply chain, sales and marketing, finance, human resources (HR), digital and internet technology (IT).

KPMG in India divided the programme into five different workstreams.

Workstream 1: Go-to-market strategy

Developed a transformation roadmap for sales and distribution
Developed a detailed distribution and channel expansion plan
Developed a channel profile and long-term plan
Developed model markets to demonstrate revamped GTM before pan-India roll-out
Drove formalisation of the annual operating plan and arrived at a consensus between the category plan and channel structure

Happy Indian business woman professional presenter giving presentation at corporate group meeting in office. Busy diverse team business people working on corporate strategy on conference training.

Workstream 2: Sales and channel management

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Developed channel performance management frameworks and reporting tools
Designed the processes and frameworks for channel performance, selection, and onboarding (exclusive outlet, distribution, e-commerce and modern trade)
Assisted the client in evaluating and negotiating with potential channel partners
Introduced channel maturity elements to further the channel development journey

Workstream 3: Marketing

Developed digital marketing strategies and frameworks for the business
Created a business case for diversifying the B2B business of one product line into a B2C model as well as initiated launch of a pilot
Developed a digital campaign to drive walk-ins into exclusive outlets

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Workstream 4: Capability development

Indian Business professionals discussing work outside modern office skyscrapers

Developed key performance indices and metrices to drive new initiatives and charters
Developed sales force performance management frameworks, reporting tools and processes
Developed capabilities around the sales charter (supply chain, service support) to facilitate readiness, handover, and drive review cadences

Workstream 5: Governance and infrastructure

Developed a long-term sales structure for various channels as well as additional layers of support and service required for an increased business size
Developed directional business requirement documents for performance tracking and distributor management systems

Technician using a tablet with a global map application at a shipping port, managing logistics and cargo tracking.

Result

Value unearthing of ~ INR17 crore using multiple cost optimisation levers across procurement spend
Value recognition of INR8 crore across eight initiatives
Addressed the gaps in the demand and supply planning process
Shifted the sales culture from primary to secondary
Empowered key account managers with account bluebook as a tool of discussion

Developed incentive framework based on secondary key performance indices
Launched ready to assemble modular kitchen business across multiple cities
Designed future IT state along with governance structure, roles, and responsibilities of key members
Organisation and leadership scorecard design including key performance index design for all unique roles

Why KPMG Connected Enterprise?

The engagement was an enterprise transformation with interdependencies across the functions of procurement, operations, supply chain, sales and marketing, finance, human resources (HR), digital and internet technology (IT).

The connected enterprise approach enabled the team to navigate the interdependencies in a structured way to create standardised processes and develop capabilities that can drive sustainable growth for the client firm.

Overview of the case

Client

A leading kitchen appliance and cookware manufacturer in India.

Challenge

Enterprise-wide transformation with interdependencies across multiple functions.

Outcome

KPMG in India unearthed value of INR17 crore using multiple cost optimisation levers across procurement spend.

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Enterprise-wide transformation for a leading Indian kitchen appliance and cookware manufacturer

Highlights

Client challenge

Incentive structures

Secondary sales key performance indices

Review formats

Recognition programmes

Sales support policies.

There was an absence of core sales support functions to drive channel management

There were gaps between production and demand planning leading to comprised sales and inventory pile up

The impact of marketing intervention on business had not been analysed.

There were certain factors missing in the distribution infrastructure such as territory realignment, coverage norms, standard operating procedure (SOP) for new distributor appointment and competition data

Key performance indices were not defined for key business roles

There was ad hoc deployment of tech solutions due to the absence of a well-defined IT roadmap.

KPMG in India’s approach

Workstream 1: Go-to-market strategy

Developed a transformation roadmap for sales and distribution

Developed a detailed distribution and channel expansion plan

Developed a channel profile and long-term plan

Developed model markets to demonstrate revamped GTM before pan-India roll-out

Drove formalisation of the annual operating plan and arrived at a consensus between the category plan and channel structure

Workstream 2: Sales and channel management

Developed channel performance management frameworks and reporting tools

Designed the processes and frameworks for channel performance, selection, and onboarding (exclusive outlet, distribution, e-commerce and modern trade)

Assisted the client in evaluating and negotiating with potential channel partners

Introduced channel maturity elements to further the channel development journey

Workstream 3: Marketing

Developed digital marketing strategies and frameworks for the business

Created a business case for diversifying the B2B business of one product line into a B2C model as well as initiated launch of a pilot

Developed a digital campaign to drive walk-ins into exclusive outlets

Workstream 4: Capability development

Developed key performance indices and metrices to drive new initiatives and charters

Developed sales force performance management frameworks, reporting tools and processes

Developed capabilities around the sales charter (supply chain, service support) to facilitate readiness, handover, and drive review cadences

Workstream 5: Governance and infrastructure

Developed a long-term sales structure for various channels as well as additional layers of support and service required for an increased business size

Developed directional business requirement documents for performance tracking and distributor management systems

Result

Value unearthing of ~ INR17 crore using multiple cost optimisation levers across procurement spend

Value recognition of INR8 crore across eight initiatives

Addressed the gaps in the demand and supply planning process

Shifted the sales culture from primary to secondary

Empowered key account managers with account bluebook as a tool of discussion

Developed incentive framework based on secondary key performance indices

Launched ready to assemble modular kitchen business across multiple cities

Designed future IT state along with governance structure, roles, and responsibilities of key members

Organisation and leadership scorecard design including key performance index design for all unique roles

Why KPMG Connected Enterprise?

Overview of the case

Client

Challenge

Outcome